Operational Efficiency

Question 1

What is operational efficiency?

Answer 1

• the ratio between the input into business operations and the output produced

Question 2

What is a unit cost?

Answer 2

• amount of money charged per item

Question 3

How is productivity calculated?

Answer 3

Output of employee / number of hours

Question 4

What are the benefits of being productive?

Answer 4

• more output

- better working environment

Question 5

How can a business improve their productivity?

Answer 5

• incentives:
  training
  Bonus